Trump tells Japan, South Korea leaders he's imposing 25% tariffs

July 7

President Trump on Monday said he was imposing 25% tariffs on imports from both South Korea and Japan, beginning the process of sending letters to countries informing them of the duties that will be applied to their imports.

Trump on social media posted letters sent to the leaders of Japan and South Korea outlining those duties. He warned that those levels would go higher if the countries imposed tariffs in retaliation.

The White House press secretary said that Trump plans to soon send letters to 12 additional countries, adding that Trump would sign an executive order delaying the implementation of tariffs to Aug. 1.

Trump had grown openly frustrated with negotiations with Japan in particular, calling the nation "spoiled" and threatening tariffs as high as 35%. Talks with South Korea, however, had continued throughout the weekend. In the end, he ended up at levels that were similar to those he announced during April's "Liberation Day" for those two countries.

Stocks fell to session lows after Trump posted the letters as markets braced for a return to potential tariff turmoil over the coming days and weeks.

Here is where things stand with various other partners:

China: The US has eased export restrictions on China for chip design software and ethane, a sign that trade tensions are calming between the two countries after they agreed to a framework to move toward a larger trade deal.
Vietnam: Trump said he had reached a trade deal with Vietnam, one that will see the country's imports face a 20% tariff — lower than the 46% he had threatened in April. He also said Vietnamese goods would face a higher 40% tariff "on any transshipping" — when goods shipped from Vietnam originate from another country, like China.

European Union: The EU has signaled it is willing to accept a 10% universal tariff on many of its exports but is seeking exemptions for sectors.
Canada: Canada has scrapped its digital services tax that was set to affect large US technology companies. The White House said trade talks between the two countries had resumed, with a deal by mid-July in focus.

Read more: What Trump's tariffs mean for the economy and your wallet

Here are the latest updates as the policy reverberates around the world.

LIVE 1358 updates

Trump posts letters to Japan, South Korea outlining 25% tariff rate

President Trump posted two nearly identical letters addressed to the leaders of Japan and South Korea outlining new tariff rates on Monday.

In the letters, Trump said he will place a 25% tariff on imports from the two countries beginning Aug. 1. Any goods that are transshipped through those countries to evade higher tariffs will face the higher duties based on the country of origin.

Japan faced a 24% tariff rate in April before the tariff pause, while South Korea had a 25% tariff rate applied to its goods. Trump claimed "longterm, and very persistent" trade deficits were the basis for reordering the trade relationships.

"There will be no Tariff if Japan, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely — In other words, in a matter of weeks," Trump wrote in the letter to Japan posted to his Truth Social account.

Trump also threatened that if either country raises its tariffs on US goods, the US will retaliate by raising tariffs by the same amount.

More letters are expected to come today. Read more here.

President Trump's letter to Japan.